Shareholders in Avanti, the satellite operator based in Britain voted overwhelmingly for the removal of the organization from the Stock Exchange of London. They were in agreement with the management that Avanti is in a better position if it is in private possession. Avanti is third on the list of satellite operators who have withdrawn from the area of public trading in the ongoing year. Previously, AsiaSat delisted from Stock Exchange of Hong Kong on September 5, followed by Inmarsat. The latter’s buyout worth $3.3 billion can be expected to be sealed by the end of this year.
This delisting is occurring when a lot of satellite operators seem to be reassessing their plans of business amid uncertainty regarding new technologies as well as altering demands for services in the communications sector. Shareholders who have control over 92% of the stock of Avanti voted to delist the company, thereby comfortably overcoming the minimum requirement of 75%. This information was revealed by the company in a statement issued on September 5. Further, the company has made it clear that September 17 will mark the last day of trading of its shares.
The initial plans of delisting were disclosed by Avanti on August 20, citing the enormous demand of money and time to comply with each and every regulatory requirement imposed on the companies that publicly trade as the reason. At that point of time, the stocks of the company were trading for roughly a British pound, which marked a fall from its earlier 52-week highest figure of about 5 pounds per share.
These figures put the valuation of the company to nearly 26 million pounds or $32 million. Ever since it announced the plans of delisting, the share price of Avanti has fallen further. On September 5, it closed at 0.25 pounds per share, thereby making the organization’s market capitalization fall to only 8.6 million pounds.